- Cyprus Property News Magazine - http://www.news.cyprus-property-buyers.com -

Claim back Cypriot VAT on property purchase

SEVERAL people have contacted me who have purchased property on the Island asking if they are eligible to apply for the special grant from the government.

Cyprus VAT grant scheme

In 2006, the Cypriot government enacted the Special Grant for Purchasing or Building a Residence, Law N.91(I)/2006 to help lower-income families afford a home in the face of ever-increasing house prices. The scheme enables first-time buyers who qualify under this scheme to a grant of two-thirds of the VAT they paid for their new home.

The scheme applies to EU citizens who are permanent residents of Cyprus. VAT grants are available under the following criteria:

People may only claim the grant if they can prove that they are permanent residents and the authorities will check their usage of water and electricity, their source of income etc., to ensure that they are actually living on the Island permanently.

Limitations

For more information on the Cyprus VAT grant scheme for first time buyers, visit Cyprus Value Added Tax laws relating to property